Workday Study Finds AI Strategy Missteps Fuel Talent Drain; Internal Hiring Falls 8%

AI Strategy: Why Workday's Study Warns of Talent Loss - And What HR Must Do Now

Workday's latest data flags a clear risk: as companies push AI initiatives, internal mobility is shrinking and top talent is walking.

The headline numbers are hard to ignore. Internal hiring is down 8%. Promotions declined in 10 of 11 industries. High performers are leaving across the board-retail up 64%, healthcare up 28%-and hiring backfills is slow, with more than half of roles taking over 30 days to fill and a quarter dragging past 60 days.

As Ashley Goldsmith, Chief People Officer at Workday, puts it: "AI may be rewriting the rules of work, but it cannot replace the value of engaged, motivated people."

What the data is saying

• High performer attrition rose across 100% of industries (retail +64%, healthcare +28%).
• Promotions fell in 10 of 11 industries; internal hiring dropped 8%.
• Recruitment bottlenecks: 50%+ of roles take over 30 days to fill; 25% exceed 60 days.
• Employee sentiment on AI strategy is fragile: 44% of comments were negative.

The signal behind the numbers

Stalled internal mobility is a warning sign. When advancement slows, engagement drops, and your best people look elsewhere. At the same time, external hiring is slower and more expensive, stretching teams thin and delaying delivery.

During AI rollouts, that gap hurts twice: you lose institutional knowledge and delay adoption because fewer people understand both your current processes and the new stack.

Why internal hiring matters right now

• It retains context: tenured employees bridge the "old way" and the "new AI-enabled way."
• It speeds execution: shorter onboarding, faster time-to-impact.
• It signals growth: employees stay when they can see a path forward.

Your 90-day HR action plan

1) Make internal mobility the default

• Post roles internally for a minimum window (e.g., 10-14 days) before going external.
• Set a target internal fill rate for eligible roles (e.g., skills-adjacent roles).
• Stand up an internal talent marketplace or gig board for short-term projects.

2) Tie AI strategy to clear career paths

• Publish a skills-to-roles map: which skills matter, where they lead, and how to get them.
• Offer paid time for upskilling tied to AI projects (micro-learning + real work).
• Make lateral moves normal: same level, new skills, real scope.

3) Fix communication before it becomes resistance

• Answer the five basics in plain language: Why are we using AI? What changes? When? What's in it for employees? Where to learn more?
• Publish an AI FAQ, a quarterly roadmap, and role-specific "day-in-the-life" examples.
• Close the loop: gather feedback weekly, respond publicly, and show what changed.

4) Enable managers to keep your top performers

• Provide one-pagers: talking points, career options, learning budgets, and timelines.
• Require career conversations for top performers each quarter during AI rollouts.
• Give managers access to internal candidates and a fast-track interview SLA.

5) Rework hiring operations for speed

• Prioritize internal candidates in your ATS workflow; create fast-pass assessments.
• Use skills-based screening to surface adjacent-fit internal talent.
• Measure time-to-first-interview and time-to-offer for internal vs. external funnels.

Metrics to review weekly

• High performer attrition (top rating bands or top quartile)
• Internal fill rate and time-to-fill (internal vs. external)
• Promotion and lateral move rates by function
• Net sentiment on AI strategy from employee feedback (and top three themes)
• Participation and completion of AI upskilling tied to live projects

Communication framework you can steal

• Cadence: monthly all-hands update, biweekly function notes, weekly manager tips.
• Format: 1-page briefs + 3-minute video + role-based examples.
• Proof: share two success stories per month showing AI + human impact on outcomes.

The risk of inaction

If internal mobility keeps sliding while AI projects scale, you compound attrition, lengthen hiring cycles, and stall delivery. The longer uncertainty lingers, the higher the odds your top people leave-and they're the ones you need most to make AI useful.

The fix isn't more tools. It's career clarity, visible opportunities, and honest communication.

What supports these findings

Workday's Global Workforce Report aggregates hundreds of millions of anonymised platform transactions across Workday Recruiting, HiredScore, Workday Peakon Employee Voice, and Workday People Analytics. Third-party survey data from Hanover Research (1,700 business leaders across North America, the UK, France, Germany, Japan, Australia, and New Zealand; plus 982 job seekers in North America) supports the trends. With more than 11,000 organisations on Workday, including over 65% of the Fortune 500, the dataset reflects broad enterprise activity.

Next step for HR

Pick three moves you can execute in 30 days: an internal posting window, a visible skills map, and a clear AI FAQ. Then add manager enablement and an internal gig board. Adoption will follow the talent you retain.

Helpful resources

• Workday for platform and research context.
• AI courses by job role to accelerate skills that support internal mobility and AI execution.